Jump to content
BANGKOK 20 October 2018 17:40
webfact

Trump doubts success in rebalancing U.S.-China trade as talks get underway

Recommended Posts

Trump doubts success in rebalancing U.S.-China trade as talks get underway

By David Lawder and Steve Holland

 

2018-05-17T132827Z_2_LYNXNPEE4G14B_RTROPTP_4_USA-TRADE-CHINA-REGULATIONS.JPG

FILE PHOTO: U.S. President Donald Trump and China's President Xi Jinping shake hands after making joint statements at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj/File Photo

 

WASHINGTON (Reuters) - President Donald Trump said on Thursday that China had become "very spoiled" on trade with the United States and cast doubt on the success of his efforts to rebalance the relationship with Beijing as high-stakes U.S.-China negotiations opened in Washington.

 

Trump, speaking to reporters at the White House, said China had "ripped off" the United States for too long and that he told Chinese President Xi Jinping that "we just can't do that anymore."

 

But he praised the efforts of U.S. and Chinese officials to try to rebalance the relationship through trade talks.

 

"Will that be successful? I tend to doubt it. The reason I doubt it is because China has become very spoiled" with getting its way on trade with the United States, he said.

 

A second round of talks between senior Trump administration officials and their Chinese counterparts started at the U.S. Treasury on Thursday morning, focused on cutting China's U.S. trade surplus and improving intellectual property protections.

 

Trump has threatened to impose up to $150 billion (£111 billion) in punitive tariffs to combat what he says is Beijing's misappropriation of U.S. technology through joint venture requirements and other policies. Beijing has threatened equal retaliation, including tariffs on some of its largest U.S. imports, including aircraft, soybeans and autos.

 

White House spokeswoman Sarah Sanders said Trump would meet with the head of the Chinese delegation, Vice Premier Liu He, later on Thursday.

 

At the Treasury, next door to the White House, there was little outward sign of the negotiations under way in the building. The ornate Cash Room, where a high-profile U.S.-China economic dialogue meeting was held last July, hosted a different event instead.

 

At trade talks in Beijing two weeks ago, both sides presented lengthy lists of demands, agreeing only to keep talking.

 

The Trump administration sought a $200 billion reduction in China's $375 billion U.S. goods trade surplus, an end to joint venture requirements that it says coerce technology transfers from American companies and an end to subsidies for advanced technology industries under the "Made in China" 2025 programme.

 

China demanded that Trump relax crushing restrictions imposed on Chinese telecommunications equipment maker ZTE Corp, and end restrictions on Chinese investments in the United States and sales of high-technology goods to China.

 

Trump on Sunday wrote on Twitter he would help put ZTE back in business after a Commerce Department ban cut off its supply of U.S. components, forcing it to suspend operations.

 

Trump told reporters on Thursday that Xi had asked him to look into the ZTE situation and he agreed to do so, adding that ZTE buys a lot of parts from U.S. companies. "That’s a lot of business.

 

"Anything we do with ZTE, it’s just a small component of the overall deal. I can only tell you this: We’re going to come out fine with China. Hopefully, China will be happy, I think we’ll be happy," Trump said.

 

Earlier, top White House economic adviser Larry Kudlow told Fox Business Network that the discussion over ZTE was about re-examining the U.S. penalties, not waiving the enforcement action altogether.

 

CHINA PROPOSAL, TRUMP TEAM RIFT

Kudlow said the White House expected China to bring a proposal to the talks that would "extend the conversation and permit additional negotiations."

 

Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said he anticipated that Liu would offer a package of increased purchases of American agricultural goods and other products to help reduce China's trade surplus.

 

"My understanding is that, as of Sunday, he was coming here to say, 'We'll buy more U.S. stuff,'" Scissors said, adding that it was unclear whether the package would include new structural reforms such as opening more Chinese business sectors to foreign investment.

 

But U.S. receptiveness to such an offer could be affected by a growing rift in the administration between Treasury Secretary Steven Mnuchin and Trump trade adviser Peter Navarro.

 

Navarro, the White House's harshest China critic, was relegated to a supporting role in recent days, administration officials said. The talks are being led by Mnuchin, Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer.

 

Navarro, author of the book "Death by China," has been a major advocate of punitive tariffs on Chinese goods, while Mnuchin has favoured a pragmatic approach of deals to cut the trade deficit and to open China's economy to U.S. companies.

 

The Washington talks will start as the U.S. trade representative finishes up public hearings on the first batch of U.S. tariffs on $50 billion worth of Chinese goods proposed as punishment for alleged violations of U.S. intellectual rights.

 

The tariffs, which target Chinese electrical and machinery parts, autos and flat-screen television sets, could take effect in early June, and may be followed by an additional round targeting $100 billion worth of goods yet to be identified.

 

(Additional reporting by Steve Holland and Doina Chiacu; Editing by Steve Orlofsky and Jonathan Oatis)

 
reuters_logo.jpg
-- © Copyright Reuters 2018-05-18

Share this post


Link to post
Share on other sites

As Crooked Donald has demonstrated his willingness to be China's running dog lackey recently (you know, save all those Chinese jobs! Get right on it! Who cares if they were sanctioned for dealing with N Korea and Iran & may be security threat!), I would doubt success of trade balance too.

Some one needs to make a chart (with lots of pictures and mention of Donnie's name) that returning jobs to US may just means jobs would be lost overseas by the locals. And that getting tough with Iran is more than waving hands in the air. "Can't we just bomb them? These sanctions don't make for good news footage. Boring. Sad."

Share this post


Link to post
Share on other sites

After World War II the US ran trade surpluses (with a few minor deficits in the early 70s) until Jimmy Carter. Since then US trade deficits have ballooned. Trump is the first president in my lifetime who has actively tried to rebalance those deficits.  Carter, Reagan, the Bushes, Clinton, and Obama were fine with them. Part of that was understandable during the Cold War, when the US gave allies and countries it wanted to entice into its sphere of influence preferable trade agreements that basically allowed them to plunder the US economy--such as W. Germany, Japan, and S. Korea. But giving away the store to a country who is your stated enemy, China, has been unforgivable. Especially the role of the Clintons, Bushes, and Obama, who stupidly believed the history of nations was determined by their childlike faith in the religion of free trade, the belief that China would join the world of open trade and democratic reform. Instead, we have the greatest protectionist regime on Earth, China, stealing trade and IT secrets left and right, engaged in the world's greatest human rights violations, and openly declaring its ownership of territory deemed to belong other nations. What a catastrophe, just so bankers and businessmen could line their pockets in the short term. 

  • Thanks 1

Share this post


Link to post
Share on other sites
9 hours ago, lannarebirth said:

 

China is reportedly offering Trump a $200 billion trade-deficit reduction package, and the US's largest exporter is poised to be the biggest winner

http://www.businessinsider.com/china-trump-200-billion-trade-deficit-reduction-package-2018-5

 

U.S. Farms, Factories Can’t Produce Enough to Meet White House Goal to Cut China Deficit

The White House is likely to fall well short of a plan to slash the U.S. trade deficit with China by half, in large part because American farms and factories will find it hard to produce enough exports to meet that goal, trade experts say.

China’s chief economic envoy, Liu He, is in Washington for talks with the Trump administration that began Thursday on the U.S. plan, which was presented during earlier talks in Beijing. The eight-point plan’s first goal: “China commits to work with Chinese importers” to reduce the U.S.

https://www.wsj.com/articles/u-s-farms-factories-cant-produce-enough-to-meet-white-house-goal-to-cut-china-deficit-1526558401

 

Among other things, Boeing, reportedly the chief beneficiary, already has a 7 year backlog of orders.

You can read the article in its entirety here:

http://www.cetusnews.com/news/U-S--Farms--Factories-Can’t-Produce-Enough-to-Meet-White-House-Goal-to-Cut-China-Deficit-.r1KPuQoRz.html

Share this post


Link to post
Share on other sites

"end restrictions on Chinese investments in the United States and sales of high-technology goods to China. "

 

Yes, it must be increased so they cannot invest in anything in the USA. No one wants the USA to look or feel like a fricken frackin China 

Share this post


Link to post
Share on other sites
11 hours ago, lannarebirth said:

 

China is reportedly offering Trump a $200 billion trade-deficit reduction package, and the US's largest exporter is poised to be the biggest winner

http://www.businessinsider.com/china-trump-200-billion-trade-deficit-reduction-package-2018-5

 

Thus far no details on this trade deal.

It might be very deceptive.

China might be offering it over time, say 10 years that might significantly reduce its present worth.

Might be offering it in industries or services that are currently almost nonexistent but base value as a mature industry.

Might require a new trade market in the US such as banking.

 

Share this post


Link to post
Share on other sites
1 hour ago, Srikcir said:

Thus far no details on this trade deal.

It might be very deceptive.

China might be offering it over time, say 10 years that might significantly reduce its present worth.

Might be offering it in industries or services that are currently almost nonexistent but base value as a mature industry.

Might require a new trade market in the US such as banking.

 

It's supposed to be 200 billion per year. But that does seem like an very unlikely figure

"Chinese negotiators are preparing to offer the administration a deal to buy up to $200 billion worth of American goods, which would allow Mr. Trump to claim victory in his campaign to reduce the trade deficit with China and rebalance America’s trade relationship with its biggest economic rival, according to people briefed on the deliberations.

But the Chinese promises would be largely illusory, economists cautioned, given the structural hurdles in China to buying more American exports and the sheer amount of goods the United States would have to produce to meet Beijing’s demand..."

What China wants in return is this:

 "That includes lifting sanctions on the telecommunications giant ZTE, which faced ruin after losing access to its American suppliers, and relaxing export controls that prevent American companies from selling sensitive technology to China."

https://www.nytimes.com/2018/05/17/us/politics/china-trade-trump-concessions.html

Share this post


Link to post
Share on other sites

If Americans were really concerned about the imbalance in trade with China they could just stop buying Chinese manufactured goods. Advanced industrial countries cannot compete with with developing countries on price. Trump is fighting a phony trade war for the sole reason that his low intellectual core will believe he is keeping his promises. None of his bomblastic rhetoric will drop that trade deficit a single % point. China has plenty government command and control over their economy. They can and will inflect much pain on certain American sectors such as being seen presently with soy bean producers. What happened to all that increased competitiveness American businesses were to gain from the windfall tax reductions?

  • Like 2

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

Sponsors
×